The Trade Desk operates a self-service platform that enables ad buyers to purchase and manage data-driven digital advertising campaigns using their own teams in the United States, Europe, Asia, and Australia. Its platform allows clients to manage integrated advertising campaigns in various advertising formats, including display, video and social, and on a multitude of devices, including computers, mobile devices and connected TV. The Trade Desk, Inc. was founded in 2009 and is based in Ventura, California.
TTD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TTD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Trade Desk Inc ranked in the 8th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Trade Desk Inc, consider:
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than merely 5.15% of the free cash flow producing stocks we're observing.
Trade Desk Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -145.9. This coverage rate is greater than that of merely 1.73% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Trade Desk Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CDAY, SONO, BHE, CALX, and DT can be thought of as valuation peers to TTD, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
KeyBanc is out with positivity today on a pair of connected TV opportunities, underlined by information at The Trade Desk's Groundswell event. The event highlighted trends in advertising, including COVID-19's impact on the behavior of advertisers and consumers, and the tailwind that CTV would see from streaming and cord-cutting, with...
Last June, I wrote an article titled "The Trade Desk Could Be The Investment Of A Lifetime." I wanted to revisit that thesis and explain why I prefer The Trade Desk (TTD) over other high-flying technology stocks. These high flyers tend to get grouped together, evidenced by The Trade Desk's...
Joseph Kowaleski on Seeking Alpha | September 21, 2020
The Trade Desk's Q2 earnings showed strong CTV spending growth amid broader revenue decline. And we expect CTV will be the fastest-growing channel for programmatic ads for the remainder of the year. Insider Intelligence analyzes this industry and several others to provide in-depth analyst reports, proprietary forecasts, customizable charts, and more. Learn more about what we offer. The Trade Desk, one of the largest demand-side platforms (DSPs), reported its Q2 earnings last week , offering a glimpse into the state of programmatic advertising outside the walled gardens. For the second quarter ending June 30, the company posted $139.4 million in revenues, a 13% year-over-year (YoY) decline, which it attributed to the uniform pause in spending at the start of the pandemic in March. A slow...